Investcorp invests in Wuhan’s leading medical testing group, Kindstar

9 Nov 2020

Investcorp, a leading global provider and manager of alternative investment products, today announced that it has made a strategic growth investment in Kindstar Globalgene (“Kindstar”), the leading independent medical testing services group in China. Terms of the transaction were not disclosed.

Founded in 2003 and headquartered in Wuhan, Kindstar is a leading independent medical testing provider in China, offering patients and physicians broad access to advanced specialty testing services across hematology, gynecology and pediatrics, infectious diseases, oncology and neurology.

Kindstar currently serves more than 3,000 hospitals in over 600 cities in China with advanced and nationally accredited clinical testing, scientific research and development laboratories and more than 2,500 employees.

Hazem Ben-Gacem, Co-CEO of Investcorp, stated: “Investcorp is proud of its Asian investment platform that it has built over the past five years. Our focus on healthcare opportunities in China allowed us to identify Kindstar which has built impressive capabilities for improving the quality of healthcare through severe diseases related testing. We believe that Kindstar has significant growth potential driven by accelerating demand for precision medicine, underserved market and the company’s broadening advanced solutions to address an even wider range of specialty healthcare needs. We are proud to support Kindstar and its first-class management team in executing its exciting ’s growth plans.”

Kindstar uses esoteric testing which involves analyzing unique molecules or substances utilizing advanced, cutting-edge technologies and skilled laboratory technicians, to provide critical diagnostic information that cannot be obtained through routine testing. China’s independent clinical laboratories market is expected to grow at high digit in the foreseeable future, with esoteric testing outpacing the overall market, driven by significant demand to address unmet medical needs.

Kindstar maintains a leading market position in China, and is further supported by its extensive global network, which includes some of the world’s leading healthcare organizations such as the Mayo Clinic, Illumina and Novartis.

Investcorp’s investment in Kindstar advances its recently launched platform focused on investing in high-quality Chinese healthcare companies that have remained resilient throughout the pandemic and are expected to experience accelerated growth. In September 2020, Investcorp announced that it had acquired minority equity stakes in Lu Daopei Medical Group, the leading hematology hospitals group in China and WeDoctor, a leading online healthcare services company.